Ad-Free CAclubindia and Daily Updates on your mobile. Subscribe Now!

Provision stores Vat Calculations

Umesh (Excuitve Accounts ) (37 Points)

09 February 2011

Hi

please help me to slove the vat calculations for the provision stores (registerd dealer -Karnataka)

Data and documents avilable for purchase (input vat credit) but for sales bills are raised on full amount (inclusive of taxes)and which is not possiable know how mutch tax colleted under which tax slabs

plz mail me about the quary:aryanumesh.suchitra @ gmail.com

regards
Umesh

Reply
Follow
Share

8 Replies

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 10 February 2011

in absence of division of goods at diff rates, the maximum rate would be applicable.

if the dealer has opted for composition scheme then such cases emerge, then he can not take input credit but pay a concessional rate of tax ( notional) as per the respective state Vat rules.

Upgrade to CAclubindia Pro. Subscribe Now!

Umesh (Excuitve Accounts ) (37 Points)
Replied 10 February 2011

HI Sharma,

Thanks for the responce

Need to know is any cluse that specify under KVAT ACT to take out put tax based on the current month purchase transactions like

for Example

Purchase Bills Input Data for a Month
Rate	Basic	Vat Amt	Net Amt	% of Pur
13.50%	100000	13500	113500	56%
5%	50000	2500	52500	26%
1%	25000	250	25250	13%
0%	10000	0	10000	5%
Total	185000	16250	201250	100%


Sales for the month Rs.245000
Rate	Basic	Vat Amt	Net Amt	% of Pur
13.50%	137200	18522	155722	56%
5%	63700	3185	66885	26%
1%	31850	318.5	32168.5	13%
0%	12250	0	12250	5%
Total	245000	22025.5	267025.5	100%


	Total Out Put Tax	22025.5
	Total Input Tax	16250
	Payable	5775.5

the above output tax calculated based on percentage of purchase made during the month

kindly help me to come out of issue

Regards

Umesh

Attached File : 55 vat working.xlsx downloaded: 257 times

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 10 February 2011

if you say that there is no opening stock and closing stock during these transactions then this will work excellent, but in case of stock in hand , FIFO would apply

Umesh (Excuitve Accounts ) (37 Points)
Replied 10 February 2011

My Quary is that Need to know is any clause that specify under KVAT ACT to take out put tax based on the current month purchase transactions like

and whether this way of calculations is accepetable udner Vat Act ; if yes need clause under the act

regards

Umesh

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 10 February 2011

there is no such specified details, but one has to maintain stocks inventory for all vat inputs and outputs, alongwith inpout credit and output tax register.

as your details looks like goods sold immediately after the purchase, hence such accounts can not be questions, but breaking of consignment in parts and mixing with other consignments ..............there u may need the old stock and FIFO system.

say u brought 10 bags of sugar and sold 10 bags of sugar making the stock nil , then again u got 5 bags of sugar and sold again 5 bags of sugar, means u r not breaking any consignment, but if u sale by retail then u have to maintain stock register, and in this process u can not say that there is no "old stock"

under provision of old stock u have to consider opening balance of stock , their input credit balance, and in First In First Out system the store has to sell the old items 1st.

here the value addition of 22% may get varied if u go in depth of stock register.

Upgrade to CAclubindia Pro. Subscribe Now!

Umesh (Excuitve Accounts ) (37 Points)
Replied 10 February 2011

Understand ur point of View and its acceptabe. But how other people doing there vat returns. some clarification or way out should be there na in the vat act

If some scrutiny happance what was our explantion to the department peoples under the VAT Rules

regards

Umesh

U S Sharma (glidor@gmail.com) (21056 Points)
Replied 10 February 2011

whenever the department feels that the revenue is getting leaked, they visit the place, take inventory of goods at random and match cash register. the diff with stock and cash book is taken in account with maximum tax rate and fines.